US Asks OPEC To Boost Oil Production By 1 Million Bpd

US Asks OPEC To Boost Oil Production By 1 Million Bpd

US Asks OPEC To Boost Oil Production By 1 Million Bpd

The request comes after US retail gasoline prices surged to the highest in more than three years and President Donald Trump in April complained about OPEC policy and rising oil prices.

"The catalyst for this recent pullback in oil was the mention of revisions to the now capped" production policy by Saudi Arabia and Russian Federation, says Sevens Report co-editor Tyler Richey.

U.S. officials have reportedly asked Saudi Arabia and other supply-cutting countries to raise output by about 1 million barrels per day. While oil is still in technical price trouble in the short term the correction should soon be over.

Later in the session, the American Petroleum Institute will publish its weekly report on U.S. crude oil supplies during last week, ahead of the DoE's official report on Wednesday and the USA oil rig count by driller Baker Hughes.

U.S. crude production climbed in March to 10.47-million barrels per day, a monthly record, data from the Energy Information Administration showed last week.

Global benchmark Brent was down 10 cents, or 0.1 percent, at $76.69 a barrel by 0652 GMT.

USA light crude was 40 cents down at 65.41 a barrel.

USA drillers added two oil rigs in the week to June 1, bringing the total to 861, the most since March 2015, energy services company Baker Hughes said on Friday.

While the USA government has often expressed opinion against OPEC's oil price-fixing policies-including a recent comment by President Trump, asking for a specific amount of oil production boost is a rare move, Bloomberg's sources noted.

"Now the most important thing for OPEC is to keep this group together".

OPEC ministers from Saudi Arabia, the United Arab Emirates, Kuwait and Algeria along with their counterpart from non-OPEC Oman gathered in Kuwait on Saturday for an unofficial meeting of a joint ministerial committee that monitors compliance with the agreement.

Despite signs of an impending rise in Opec production, "for the moment the output will remain low", ANZ bank said in a note on Tuesday. "Crude oil production rose to another record, while drilling activity picked up again". "We are going into summer, the high demand season, and I think we are going to see a fall in USA crude oil inventories, but shale oil output is growing".

OPEC and non-OPEC Arab oil ministers stressed the need for continued cooperation between oil producers who are part of the deal for a global supply cut, which expires at the end of 2018, Kuwait's state news agency KUNA reported on Sunday.

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